One of the leading NBFC companies, Veritas Finance Private Limited, which filed its DRHP, has received approval from the market regulator to float its IPO, as shown in the update on Tuesday.
This IPO comprises ₹600 crore fresh issues and an Offer for Sale (OFS) of ₹2,200 crore by shareholders looking to exit their positions with a Face value of Rs 10 each.
Additionally, individual shareholders, Vidya Arulmany, also offer ₹36 crores, while ₹21 crores each by P Surendra Pai and Savita S Pai, simultaneously, ₹14 crores by Sheela Pai Cole, and ₹8 crores by Moneisha Sharad Gandhi.
The company has decided how to utilize funds. The funds will be used for enhanced capital to support future business needs and to lend money to others.
For the IPO process, Veritas Finance has collaborated with investment banks such as HDFC Bank, Kotak Mahindra Capital, Jefferies, ICICI Securities, and Nuvama Wealth Management Limited.
This IPO would be listed on the BSE(Bombay Stock Exchange)& NSE(National Stock Exchange).
Veritas Finance Ltd began its operations in 2015 with a focus on meeting the financial needs of micro, small, and medium enterprises (MSMEs) in India. Moreover, this NBFC company was established in 2015, and it offers small business loans to MSMEs and self-employed individuals, along with home loans and loans for used commercial vehicles.
The company offers tailor-made financial products to cater to short-term working capital requirements, medium-term business loan needs, and long-term housing construction needs. Veritas Finance Ltd has a gross income of ₹1,124 crore, with a profit after tax (before other comprehensive income) amounting to ₹245 crore.
Veritas Finance IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Veritas Finance Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹442.23 | ₹340.86 | ₹75.40 |
| 2023 | ₹680.80 | ₹447.95 | ₹176.40 |
| 2024 | ₹1,117.49 | ₹794.53 | ₹245.05 |
| September 2024 | ₹720.11 | ₹542.91 | ₹133.11 |
Veritas Finance IPO Valuation – FY2024
Veritas Finance IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹19.04 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.27% |
| Net Asset Value (NAV): | ₹182.68 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Five Star Business Finance | 28.64 | 22.98 | 17.59% | 177.68 | 2,195.10 Cr. |
| SBFC Finance Limited | 2.35 | 36.21 | 10.13% | 25.87 | 1,019.92 Cr. |
| Aavas Financiers Limited | 62.03 | 26.31 | 13.96% | 476.79 | 2,020.69 Cr. |
| Aptus Value Housing Finance India Limited | 12.27 | 22.20 | 14.75% | 75.52 | 1,416.85 Cr. |
| Cholamandalam Investment and Finance Company Limited | 41.17 | 29.82 | NA | 233.26 | 19,419.87 Cr. |
| Sundaram Finance Limited | 130.31 | 34.33 | NA | 997.10 | 7,285.50 Cr. |
Objects of the Issue
- To utilise the Net Proceeds from the Fresh Issue towards augmenting our capital base to meet future business requirements of our Company towards onward lending (referred to herein as the “Objects”)
- The main objects and objects incidental and ancillary to the main objects set out in the Memorandum of Association enable us:
- To undertake our existing business activities;
- To undertake the activities proposed to be funded from the Net Proceeds
IPO Lead Managers aka Merchant Bankers
- ICICI Securities Limited
- HDFC Bank Limited
- Jefferies India Private Limited
- Kotak Mahindra Capital Company Limited
- Nuvama Wealth Management Limited
